Noch Deutsche Texte: Our Path To Sustainable Value Creation

Our path to
sustainable value creation
Annual Report 2010
www.siemens.com
K ey figures
Financial performance measures (in millions of euros, unless otherwise indicated) FY 2010 FY 2009
New orders (continuing operations) 81,163 78,991

Revenue (continuing operations) 75,978 76,651
Profit Total Sectors 7,789 7,466
Income from continuing operations 4,112 2,457
Return on capital employed (ROCE) (continuing operations) 1
10.4% 6.1%
Capital structure 2 0.08 0.31
Free cash flow (continuing operations) 7,111 3,786
Dividend per share (in euros) 2.70 5 1.60
Employees (continuing operations) 3

Total employees worldwide (in thousands) 3 405 405
Employees in Germany (in thousands) 3 128 128
Research and development

R&D employees (in thousands) 4 30.1 31.8
R&D expenditures (in millions of euros) 3,846 3,900
Percentage of total revenue invested in R&D 5.1% 5.1%
Major R&D facilities 178 176
Siemens’ Environmental Portfolio

Revenue from Environmental Portfolio (in billions of euros) 27.6 26.8
Annual reduction of greenhouse gas emissions due to products and solutions from
Environmental Portfolio, compared to the start of fiscal 2002 (in millions of tons of CO2) 267 214
Some of the figures mentioned above are or may be non-GAAP financial measures. For further information please refer to www.siemens.com/nonGAAP.
1 FY 2010: including (3.6) pp related to impairment charges of €1.204 billion (pre-tax) related to Diagnostics and charges of €460 million (pre-tax) related to the
strategic reorientation of Siemens IT Solutions and Services; FY 2009: including (4.6) pp related to impairment charges of €1.850 billion (pre-tax) at NSN
2 Adjusted industrial net debt / adjusted EBITDA (continuing operations)
3 As of September 30, 2010 and 2009
4 Average number of employees in fiscal year
5 Proposal to the Annual Shareholders’ Meeting
Contents Part I
I ntroduction F oundation S tructure
4 Preface 15 Our values 27 Demographic change and healthcare

6 Managing Board of Siemens AG 16 Sustainability – Our guiding principle 28 Urbanization and sustainable development
8 Our strategy 17 Market and technology leadership 28 Climate change and energy supply
9 Strategy: Overview 29 Globalization and competitiveness
30 A strong structure
D
irections O
ne Siemens Vision
41 Focus on innovation-driven 57 One Siemens: Overview 65 Thinking ahead

growth markets 59 Framework for sustainable value creation
43 Get closer to our customers 60 Focus areas
46 Use the power of Siemens
18 Special report 1
Solar thermal power
32 S
pecial report 2
SOMATOM Spirit
48 Special report 3
Electric mobility
Introduction
A company geared for success and profitable growth needs a

foundation of values, expertise and experience that encompasses
both its history and the people who make it what it is: the compa-
ny’s employees, shareholders and customers.
At Siemens, sustainability – the future orientation that was fos-

tered by our company’s founding family back in the nineteenth
century and continues to benefit our customers, our shareholders
and society today – is an integral part of our foundation.
This foundation is the basis for the company strategy that’s now
enabling more than 400,000 Siemens employees around
the world to channel their knowledge and skills into providing
answers to the challenges of our time.
In this year’s Annual Report, we’d like to present three projects

that showcase our pioneering role in addressing these chal-
lenges. Underscoring our focus on innovation- and technology-
driven growth markets, we first take a look at a solar thermal
power plant in Lebrija, Spain. With a capacity of 50 megawatts,
this trailblazing facility will soon be supplying carbon-free power
to some 50,000 households.
4
Shanghai is our next stop. Join us in the Chinese megacity for a
tour of the ultra-modern plant where we manufacture SOMATOM
Spirit CT scanners. Then visit one of our customers to see how
these scanners are helping improve healthcare in rural areas –
proof of the importance we attach to cultivating a local presence
worldwide and making technological advances available to people
all around the globe.
Finally, we’d like to take you for a spin in a state-of-the-art electric

car. In pushing electric mobility, we’re going beyond vehicles
whose advanced drives are launching a new era in transportation.
We’re also building smart grids that permit the low-loss, long-dis-
tance transmission of green electricity to urban areas and devel-
oping innovative concepts for batteries that help offset power sup-
ply fluctuations by serving as mobile power storage units.
These projects highlight just a few of the innovations spawned

by the ideas and knowhow of our employees and realized by the
strength of our company. And it’s this strength – what we call the
power of Siemens – that’s enabling us to outpace our competitors
by breaking new ground as modern-day pioneers and setting
milestones for progress and development in societies worldwide.
5
Managing Board of Siemens AG
From left to right:

Siegfried Russwurm Industry, Corporate Information Technology, Africa, Middle East
Barbara Kux Corporate Supply Chain Management, Corporate Sustainability, Global Shared Services
Hermann Requardt Healthcare, Corporate Technology
Wolfgang Dehen Energy, Asia, Australia
6
Joe Kaeser Corporate Finance and Controlling, Financial Services, Siemens IT Solutions and Services, Equity Investments, Siemens Real Estate
Peter Löscher – President and Chief Executive Officer Corporate Communications and Government Affairs, Corporate Development
Peter Y. Solmssen Corporate Legal and Compliance, Americas
Brigitte Ederer Corporate Human Resources, Europe, Commonwealth of Independent States
7
As of December 1, 2010
Our strategy
On track for sustainable growth

Our vision of change and growth
Responsible, excellent and innovative – these are the values

that define who we are and what we do. Sustainability in the
broad sense – support for long-term environmental, economic
and social progress – is the guiding principle of all our actions.
Our company is providing the world with the solutions it needs

to master the challenges of demographic change, urbanization,
climate change and globalization. To leverage the potential of
these megatrends in both traditional and new markets, we’ve
grouped our activities into three Sectors: Industry, Energy and
Healthcare.
We’re in an excellent competitive position. Many of our busi-

nesses are already market and technology leaders. But we
don’t just want to maintain our position; we want to expand it.
That’s why we’re:
>> focusing on innovation- and technology-driven growth

markets
>> strengthening our global presence to be a strong local
partner to our customers around the world and
>> teaming up to use the power of Siemens.
8
One Siemens is the framework for our company’s sustainable
development and capital-efficient growth. Within this frame-
work, focus areas specify the fields we’ll concentrate on in the
years ahead. Our overriding aim is to continuously improve our
performance vis-à-vis the markets and our competitors while
increasing our long-term value.
We want to fully unleash the power of our integrated tech

nology company – for example, by constantly enlarging our
Environmental Portfolio and steadily increasing the profit it
generates, by continuously expanding our highly diversified
service business and by further strengthening our position
in the booming markets of the emerging countries.
All these strategic factors are combined in our entrepreneurial

vision. As a pioneer in electrical engineering, we were a major
force in industrialization. It was our pioneering spirit that
made us the global powerhouse we are today. And now we’re
moving ahead to break new ground in energy efficiency, indus-
trial productivity, affordable and personalized healthcare, and
intelligent infrastructure solutions – future-oriented fields in
which we’ll also play a pioneering role.
13
Foundation
We have a strong foundation, comprising our values, sustainability, and market and technology leadership.
For more information, see pages 14 -17.
Economy, environment and society

Sustainability – Our guiding principle
Responsible – Excellent – Innovative

Our values
High-quality businesses
Market and technology leadership
9
Structure
The world is facing major challenges – demographic change, urbanization, climate change and globalization –
that demand practical solutions. We drew the strategic consequences early on, rigorously orienting our portfolio
toward these megatrends. For further information, please turn to pages 26-31.
Energy
Industry
Healthcare
Megatrends
Demographic change Urbanization Climate change Globalization
10
Directions
A strong structure alone is not enough. We also need a tightly focused, future-oriented strategy. Within our One
Siemens framework, we’ve defined three strategic directions with nine concrete focus areas. A financial target
system and the aim of continuous improvement round out our strategic orientation. More detailed information
about what we’re doing to fully unleash the power of Siemens is provided on pages 40-47 and 56-63.
Get closer to our customers

worldwide – through local
entrepreneurship and local
value creation
Focus on innovation- and Use the power of Siemens to

technology-driven growth further outpace our competitors
markets
11
Vision
To be a pioneer – this is our vision and our highest aspiration. Building on our solid foundation, strong structure
and forward-looking strategy, we’re working every day to make this vision a reality. Our vision forms the apex
of our strategy pyramid and sets the course for all our activities. For more information, please turn to pages 64-65.
The pioneer in
Energy efficiency
Industrial productivity
Affordable and personalized
healthcare
Intelligent infrastructure
solutions
12
Foundation
Foundation: Overview
See page 9.
Coupling innovative concepts and visionary ideas with a far-

sighted willingness to take business risks in the interest of achiev-
ing enduring success, our founder Werner von Siemens put our
company on track to become a global provider of forward-looking,
leading-edge technologies. In his day, Werner von Siemens was
a pioneer in electrical engineering. And it’s this same pioneering
spirit that’s enabled our company to grow and prosper. Today,
we remain intensely committed to blazing new trails.
Now, as in Werner von Siemens’ day, we need a strong foundation,

a basis that we can build on. This foundation comprises our val-
ues, our guiding principle of sustainability and our aim to achieve
market and technology leadership all around the world.
4 Introduction 14 Foundation 26 Structure

14
5 Our values
1
16 Sustainability – Our guiding principle
17 Market and technology leadership
“Our tradition and our heritage are
a source of inspiration for the future.”
Nathalie von Siemens, great-great-granddaughter of our company’s founder
www.siemens.com/values
Our values Excellent. We set ambitious targets derived from

our vision and test them against benchmarks. We
Ideas, inventions, patents – ever since the first also support our customers in the quest for perfect
Siemens company, Telegraphen-Bauanstalt von quality, providing solutions that exceed their expec-
Siemens & Halske, was founded in 1847, outstand- tations. Excellence entails defining a path of con-
ing technological innovations have been the source tinuous improvement, constantly challenging exist-
of our success. As a pioneer in electrical engineering processes and quickly seizing new business
ing, Siemens was a major force in industrialization. opportunities. Excellence also means attracting the
Our company thrived as a pioneer, and the pioneer- most talented individuals on the market and giving
ing spirit of our employees continues to drive our them the skills and opportunities they need in order
success today. Our solutions to the major challeng- to excel.
es of our time have made us one of the world’s lead-
ing technology companies. Our system of values Innovative. Our employees have changed the
and our strategy provide us with a framework for world with their inventions and ideas. And we’re
profitable, sustainable growth while guiding the continuing this more than 160-year tradition of in-
actions of all our employees. Our company values novation. Our R&D activities are closely aligned
are an integral part of the foundation of Siemens’ with our business strategy. We want to be the trend-
strategy pyramid. setter in all our businesses and achieve market lead-
ership in both established and emerging technolo-
Responsible. We’re committed to acting responsi- gies. As our employees’ energy and creativity take
bly in everything we do. For our customers, we’re a us down new and unexplored avenues, we maintain
reliable partner. For the societies in which we do an unremitting focus on business results, measur-
business, we’re a good corporate citizen. For our ing the success of our innovations by the enduring
employees, we’re an attractive, long-term employer. success of our customers.
And for our shareholders, we generate sustainable www.siemens.com/values
growth in our company’s value. Not only do we act
in accordance with the highest professional and
ethical standards; we also demand that our busi-
ness partners, suppliers and other stakeholders
meet these standards as well.
40 Directions 56 One Siemens 64 Vision

15
Siemens Sustainability Program
Business opportunities Walk the talk Stakeholder engagement

Sustainability – Our guiding principle
www.siemens.com/sustainability
Sustainability – Our guiding principle also helping give people everywhere access to a
complete range of advanced medical technologies.
Our understanding of sustainability is deeply rooted What’s more, our infrastructure solutions in the ar-
in our company’s history and closely linked to our eas of mobility, power supply and water are making
values. More than a century ago, Werner von major contributions to improving living conditions
Siemens insisted that his company fulfill its respon- around the world. Our Sustainability Program is
sibilities to its employees, to society and to nature. helping us achieve these goals by addressing three
“I won’t sell the future of my company,” he said, “for key areas:
a short-term profit.” We still live by these words to-
day. To achieve excellence, to capture leading posi- BUSINESS OPPORTUNITIES
tions in the markets of tomorrow, to develop inno- In fiscal 2010, our Environmental Portfolio generat-
vative technologies that help ensure the future ed revenue of about €28 billion, after reaching
viability of modern civilization – this has always the target of €25 billion we’d set for fiscal 2011 con-
been our vision and our challenge. siderably faster than planned. Now, we’re aiming to
push annual revenue from the Portfolio to over
That’s why all our actions and decisions are in- €40 billion by the end of 2014. In fiscal 2010, our
formed by the principle of sustainability. We act re- environmental offerings helped customers reduce
sponsibly on behalf of future generations to ensure their CO2 emissions by 267 million tons – an amount
economic, environmental and social progress. Our equal to the total annual CO2 emissions of 80 mil-
aim is to achieve a balance between the environ- lion economy-sized cars driven an average of
ment, business and society. For the environment, 20,000 kilometers each. We’re fostering green in-
we’re providing innovative products and solutions novations and relentlessly driving the development
that improve both our own ecobalance and that of of our Environmental Portfolio. Our commitment to
our customers and suppliers. For our business, ecofriendly technologies and the successes we’ve
we’re focusing on long-term value creation. And for scored in this area are already making us – an inte-
society, we’re fostering our employees’ develop- grated technology company that delivers innovative
ment and striving to be good citizens in all the com- products and solutions – a key enabler on the path
munities in which we’re active. As a world-leading to an environmentally aware, climate-friendly, low-
provider of healthcare products and solutions, we’re carbon society.

16
5 Our values
1
16 Sustainability – Our guiding principle
17 Market and technology leadership
“ Whoever delivers the best results will ultimately
come out ahead, and I always prefer to advertise
with achievements rather than words.”
Werner von Siemens, January 18, 1876
Walk the talk Market and technology leadership

We’ve defined sustainability targets for all relevant
areas of our company, and we’re well on the way to Size alone is no guarantee of sustainable growth.
achieving them. A prime example here is our envi- Only a company that’s also a technology leader can
ronmental program, which aims to improve our achieve business success and profitable growth in
company’s CO2 efficiency (emissions relative to the long term. Leadership in tomorrow’s innova-
revenue) 20 percent by the end of fiscal 2011, com- tion-driven growth markets and leadership in tech-
pared to 2006. That’s why we plan to invest up to nologies for these markets are two sides of the
€100 million by the end of 2012 to make our produc- same coin. And that coin is success.
tion facilities even greener. For example, as part of
our energy efficiency program, we’ve already con- Our power of innovation is making us strong:
ducted “energy health checks” at some 100 major already today, roughly two-thirds of our revenue is
facilities. At the same time, we’ve launched a pro- generated by businesses that are No. 1 or No. 2 in
gram to track the environmental performance of their markets. That’s an outstanding starting point.
our suppliers – reflecting our commitment to be- Building on this performance, we now intend to
coming the world’s first industrial company with maintain and expand the positions we’ve already
a supply chain that’s ecofriendly from end to end. achieved – meeting the challenge to excel while
We’re also using water much more efficiently. Our demonstrating exemplary corporate responsibility.
target here is to cut consumption at our company
20 percent by fiscal 2011, compared to 2006.
STAKEHOLDER Engagement
We’re intensifying our communication with our
stakeholders as well as our partnerships with other
organizations. To support the ongoing develop-
ment of our sustainability strategy, we’ve set up
a high-level panel of experts, the Siemens Sustain-
ability Advisory Board.
www.siemens.com/sustainability

17
Solar thermal power –
Lebrija
Special report 1
Focus on
innovation-driven
growth markets
In less than six hours, the sun generates
enough energy in the earth’s deserts to
meet the electricity needs of all the people
on our planet for an entire year.
Thanks to solar thermal technology, this
energy can now be reaped without produc-
ing CO2 emissions. Siemens’ first solar
thermal plant will start feeding electricity
into Spain’s power grid in 2011.
On land once occupied by a cotton plantation, some
170,000 mirrors are now being installed to capture
the sun’s energy. This solar thermal facility will be
able to supply about 50,000 Spanish households
with carbon-free electricity.
Avi Brenmiller, CEO of our Solar Thermal Energy Busi-
ness Unit, is a pioneer in the field of solar thermal
power. He and several other leading experts are now
working for Siemens to optimize this technology.
“Siemens is focusing on innovation- and technology-driven

growth markets. One prime example here is solar thermal
power, which offers tremendous potential for providing clean
energy in the future. Our new solar thermal power plant in
Lebrija demonstrates the feasibility of this leading-edge tech-
nology. By harnessing the sun’s energy, we’ll soon be provid-
ing about 50,000 households with carbon-free electricity.”
20 Avi Brenmiller, Solar Thermal Energy Business Unit

170,000
individual parabolic mirrors ready for action
The curvature of the mirrors

installed at the Lebrija power plant
is calculated down to a fraction of a
degree, maximizing the amount of
solar energy that can be captured.
Siemens engineer Moshe Shtamper
notes, “The more precisely we work,
the higher the plant’s efficiency and
the greater the CO2 reduction.”
400
degrees Celsius
That’s the temperature that can

be reached by the thermal oil in
the receiver tubes where the
sun’s heat is concentrated. The
hotter the oil, the more efficient
the plant.
The individual components were manufactured at
high-tech production facilities before being shipped to
Lebrija for final plug-and-play assembly – thus eliminat-
ing the need for costly and time-consuming construc-
tion on site. Modular design is important if power
plants are to be built on a large scale with the help of
local laborers in regions like the rocky deserts of North
Africa.
If lined up end-to-end, the parabolic mirrors installed
in Lebrija would extend some 60 kilometers.
Siemens’ portfolio boasts nearly all the components and sys-

tems needed for solar thermal power plants – including the
solar collectors that concentrate the sun’s energy, the control
technology and the power plant unit, in which a steam turbine
and a generator convert thermal energy to electric power.
In addition, our electrical and automation technologies enable
the efficient production of high-quality mirrors and receivers
for the solar collectors.
Today, there’s no question that solar thermal power is a

viable technology; the challenge now is to cut costs. Siemens
has greatly expanded its expertise in solar thermal energy,
for example, by acquiring the specialist provider Solel at the
beginning of fiscal 2010. Leading experts in the field are now
hard at work at Siemens, researching ways to improve mirror
coatings and optimize the receiver tubes that transport
t hermal oil. Tubes from Siemens are already setting records
for efficiency. And higher efficiency means greater use of solar
thermal energy – and more power plant projects. 23
50
megawatts of carbon-free electricity
That’s enough ecofriendly power

to meet the needs of about 50,000
Spanish households.
Reaping the sun’s irrors concentrate the sun’s energy to heat oil.
m
This heat is transferred to water, which then evap
energy with solar orates. The resulting high-pressure steam drives a
thermal technology turbine which – via a generator – converts mechan-

ical energy into electricity.
In extremely sunny regions such as the Sahara, CSP

plants operate very efficiently – unlike photovoltaic
systems, whose efficiency declines in hot environ-
ments. Solar thermal technology enables heat to be
stored in accumulators for several hours so that it
can be converted to electricity even at night. Capa-
ble of producing electricity at regular, predictable
intervals, CSP plants – like their fossil-fuel counter-
By 2050, solar thermal power parts – can help offset supply fluctuations from
wind power and photovoltaic installations.
plants and wind farms in North
Africa and the Middle East These advantages explain why numerous North
could be not only meeting all African countries are now investing in solar thermal
power. For example, by 2020, Morocco alone in-
local electricity requirements
tends to increase the amount of power generated at
but also providing more than CSP plants to 2,000 megawatts – an amount equiva-
15 percent of the power con- lent to the capacity of two large conventional power
sumed in Europe. plants. This resource-deprived country – which
currently imports nearly all its energy – could some
day be exporting solar power to Europe. That’s also
“Everything here is in motion,” says Moshe the idea behind Desertec, an initiative that envi-
Shtamper, surveying Siemens’ new solar thermal sions an entire network of power plants generating
power plant in Lebrija, Spain. Pointing to one of the electricity from renewable sources across North Af-
pipes that transport hot thermal oil to the heat ex- rica and the Middle East. By 2050, more than 15 per-
changer, Shtampter explains, “The tubes expand cent of Europe’s electricity requirements could be
when heated, the mirrors align themselves with the met with the help of the sun and the wind.
sun, the steam turbine rotates. Sometimes this
plant seems like a living thing to me.” The “living “In the wind power business, Siemens demonstrated
thing” the Siemens engineer is talking about is years ago how a green, leading-edge technology
located some 60 kilometers south of Seville, in could be turned into a lucrative business within
Andalusia. Cotton used to be grown on these fields. only a few years. Now we’re poised to do the same
Shtamper’s team waited until the last harvest was in the field of solar energy,” says René Umlauft, CEO
in to begin work. Now it’s putting the finishing of Siemens’ Renewable Energy Division. And there’s
touches on the facility, which will go into operation no doubt that the market for solar thermal power
in 2011. With a capacity of 50 megawatts, the Leb- plants is just as abuzz with activity as the plants
rija plant will soon be generating enough electricity themselves.
to meet the needs of roughly 50,000 Spanish house- www.siemens.com/lebrija
holds.
Solar thermal power plants – also known as concen-

trated solar power (CSP) plants – are being con-
structed at many other locations worldwide. They
operate on a different principle than photovoltaic
facilities, which convert solar radiation directly into
electricity using silicon cells. No costly silicon is re-
quired for solar thermal power plants. Instead, 25
Structure
Structure: Overview
See page 10.
The world is changing, and so are the societies in which we do

business. Climate change and globalization, a dramatic increase
in urbanization, demographic change and its consequences –
all these trends are having a direct impact on humanity and the
economic environment. But for a company like ours, constant
change also creates major new opportunities.
We saw the changes coming early on and geared our portfolio

accordingly. Having moved quickly to focus our company strategy
on the megatrends of our time, we’re now well positioned to
continue generating sustainable, profitable growth in the years
ahead.

26
7
2 Demographic change and healthcare
28 Urbanization and sustainable development
28 Climate change and energy supply
29 Globalization and competitiveness
The global population is expected to grow 32 percent by 2050.
As one of the world’s largest providers to the healthcare industry,
we’re rising to the challenge.
www.siemens.com/demographic-change
Demographic change as rapidly as inhabitants would like. That’s why our

and healthcare challenge now is to boost the efficiency and afford-
ability of medical services while improving the qual-
There are now more people on earth than ever be- ity of individual patient care.
fore, and life expectancy has reached an all-time
high. The world’s population will increase from Our innovations are optimizing medical treatment
nearly seven billion today to nine billion in 2050, and cutting costs by enabling healthcare profes-
and life expectancy will also continue to rise. In sionals to diagnose and treat disease much earlier
1950, average life expectancy worldwide was only than before. We’re not only improving outcomes but
46 years; today, it’s about 68 years, and experts are also reducing the need for the expensive therapies
predicting that it will reach 76 by mid-century. Ac- often required at advanced stages of disease. Our
cording to UN estimates, the proportion of people products and solutions for the entire healthcare
65 and older will have nearly tripled by 2050. continuum – from prevention, early detection and
diagnosis to treatment and follow-up care – are
Demographic change – one of today’s major mega- helping physicians diagnose diseases earlier, more
trends – is further intensifying the demand for accurately and with greater patient comfort while
healthcare. All over the world, healthcare costs are making treatment increasingly personalized and
already straining the financial resources of govern- effective.
ments and insurance providers. In some industrial-
ized countries, they now consume more than ten
percent of gross national product – and the figure is
rising. In the rapidly growing emerging and devel-
oping countries, healthcare quality is not improving

27
With the Green City Index , we’re now
helping numerous cities minimize their climate footprint –
because we’re the ideal partner for
climate-friendly infrastructure solutions.
www.siemens.com/city-index
Urbanization and sustainable enhance the quality of urban life, foster competi-
d
evelopment tiveness, conserve resources and minimize environ-
mental impact.
In 2009, for the first time in history, more people
lived in cities than rural areas. By 2050, the propor-
tion of city dwellers will have risen to 70 percent – Climate change
with a simultaneous increase in world population. and energy supply
Today’s booming urban centers are making a major
contribution to economic development. For exam- The scientific consensus is clear: our climate is
ple, 40 percent of Japan’s gross domestic product is changing. Between 1850 and the beginning of the
generated in Tokyo, while Paris accounts for 30 per- 21st century, the average temperature on the earth’s
cent of all the goods and services produced in surface rose by 0.76° Celsius. The period between
France. As cities increase in economic importance, 1994 and 2005 included 11 of the 12 warmest years
their inhabitants are demanding a higher quality of on record. Since the beginning of industrialization,
life. Clean air, clean water, reliable energy supplies the warming of the earth’s surface has been accom-
and efficient transportation systems are key needs. panied by a massive increase in greenhouse gas
emissions. The concentration of CO2 in the atmo-
Urbanization – another of today’s megatrends – sphere is now at the highest level in 800,000 years.
poses an enormous challenge. Cities currently con-
sume some 75 percent of the world’s energy and Climate change is closely linked to shifting demo-
generate 80 percent of its greenhouse gases. Traffic graphics. Due to world population growth and
jams cost the European Union an estimated ongoing globalization, the amount of power gener-
€100 billion a year in lost economic performance. ated worldwide will increase more than 60 percent
Our task is to provide convenient, cost-effective by 2030. Emerging and developing countries will
green infrastructures for the cities of tomorrow. account for two-thirds of this increase. Drastic mea-
sures will be required to limit the rise in global tem-
Siemens’ products and solutions for the processing perature to a maximum of 2° Celsius. Innovations
industry, mass transit, buildings, energy conver- are the most effective means of combating the neg-
sion, power distribution and hospitals are creating ative consequences of climate change – innova-
energy-efficient, sustainable infrastructures that tions relating to energy efficiency, power genera-

28
7
The challenges facing the world are global.
And so are we: in some 190 countries around the world,
we’re close to customers and meeting local needs.
1950 2007
Substantial increase in real exports www.siemens.com/worldwide
tion, power distribution and energy consumption. called BRIC countries – Brazil, Russia, India and
As a world-leading supplier of products, solutions China – are expected to grow twice as fast as those
and services for the entire energy conversion chain, of their industrialized counterparts. That’s why the
we’re a pioneer in all these fields. Our technologies challenge for us is to ensure our global competitive-
are enabling us to push the efficiency of fossil-fuel ness by capturing long-term, leading positions in
power plants, wind farms and solar power systems, tomorrow’s markets.
develop smart power grids, boost the energy effi-
ciency of production facilities and create energy- To succeed in today’s global economy, companies
saving lighting systems. have to think and act internationally. We support
customers in some 190 countries, and we’ve had
operations in the BRIC countries for over 100 years.
Globalization and Our aim is to manufacture cost-efficient, affordable,
competitiveness high-quality, customized products all over the
world. We can supply global customers with simple
As the 21st century unfolds, the significance of na- solutions worldwide – systems that can improve the
tional economies is declining. Business networks lives of people everywhere. Our range of products,
are becoming increasingly globalized as more and services, knowhow and value-creating solutions is
more companies compete internationally. And the virtually unparalleled. For example, we provide
figures tell the story: the number of multinational automation systems and software solutions that
companies has grown from about 10,000 in 1968- simplify and streamline industrial processes; build-
1969 to more than 80,000 today. In addition, the ing and security technologies that optimize the effi
volume of sea freight has more than tripled over the ciency of manufacturing and working environ-
last 40 years. ments; and water treatment systems that help com-
munities meet the steadily growing demand for
Globalized markets aren’t only expanding business clean water. We also offer networked transportation
opportunities; they’re also intensifying competitive systems and other mobility solutions on a world-
pressures and causing the center of economic grav- wide basis.
ity to shift to new regions. It’s the world’s emerging
countries that will be the growth drivers of the fu-
ture. In the years ahead, the economies of the so-

29
Energy
Demographic change
Urbanization Megatrends
Climate change
Globalization
Industry Healthcare
A strong structure Our Energy Sector is a world-leading supplier of a

wide range of products, solutions and services in
We’re an integrated technology company. Our port- the field of energy technology. We enable custom-
folio is geared to long-term success and tightly fo- ers to generate, transmit and distribute electrical
cused on the megatrends demographic change, power at the highest levels of efficiency. We also
urbanization, climate change and globalization. To help them produce, convert and transport the pri-
systematically leverage the potential offered by mary fuels oil and gas. We’re the only manufacturer
these megatrends in both established and new mar- worldwide with knowhow, products, solutions and
kets, we’ve organized our operating businesses into key components spanning the entire energy conver-
three Sectors: Industry, Energy and Healthcare. sion chain. Our exceptional solutions expertise is
These Sectors form the sides of our strategy pyra- particularly striking in the area of interfaces: for ex-
mid. They’re supported by our Regional Companies, ample, in plant-to-grid connections, grid integra-
which are grouped into 17 Regional Clusters. Cross- tion technologies and smart distribution systems
Sector businesses offering efficient IT and financial linking grids to consumers. Siemens Energy has
solutions round out our global portfolio. about 88,000 employees worldwide. In fiscal 2010,
www.siemens.com/structure the Sector generated total revenue of €25.520 billion
and profit of €3.562 billion.
Our Industry Sector is one of the world’s leading www.siemens.com/energy
suppliers of manufacturing, transportation, build-
ing and lighting systems. Our technologies are Our Healthcare Sector is one of the world’s largest
helping industry and infrastructure customers com- providers to the healthcare industry. We specialize
pete more effectively and reduce their environmen- in medical solutions based on our core competen-
tal footprint by optimizing their profitability, effi- cies and innovative strengths: on the one hand, di-
ciency and flexibility. Siemens Industry has some agnostic systems and therapeutic technologies; and
204,000 employees worldwide and activities in on the other, knowledge processing – including in-
more than 130 countries. In fiscal 2010, the Sector formation technology and systems integration. Our
generated total revenue of €34.869 billion and prof- acquisitions in the field of laboratory diagnostics
it of €3.478 billion. have made us the first integrated healthcare com-
www.siemens.com/industry pany to combine imaging systems, laboratory diag-
nostics, treatment solutions and healthcare IT –

30
7
Having moved quickly to focus our company strategy on the
megatrends of our time, we’re now ideally equipped
to continue generating
sustainable and profitable growth in the years ahead.
www.siemens.com/strategy
rounded off by consulting and services. To leverage f actor for Siemens – particularly when it comes to
our market and growth potential even further, we’re acquiring new customers. Siemens Financial
reorganizing our activities into four Divisions: Imag- Services (as of October 1, 2010: Financial Services)
ing & Therapy Systems, Clinical Products, Diagnos- finances infrastructure, equipment and operations
tics and Customer Solutions. Our hearing instru- and provides services for Siemens and business-
ments business will be operated as a separate unit in to-business customers worldwide. In fiscal 2010,
the future. Siemens Healthcare has about 49,000 Siemens Financial Services had 2,000 employees
employees worldwide and activities in more than 130 and income before income taxes of €447 million.
countries. In fiscal 2010, the Sector generated total www.siemens.com/ar/finance
revenue of €12.364 billion and profit of €748 million.
www.siemens.com/healthcare
As a leading European IT service provider with a

global presence, Siemens IT Solutions and Ser-
vices is rigorously oriented toward the specific re-
quirements of the worldwide IT market. Our solu-
tions and services enable customers in both the
private and public sectors to create value through
IT. From consulting and systems integration to the
management of IT infrastructures, we’re a single-
source supplier for the entire IT service chain. In fis-
cal 2010, Siemens IT Solutions and Services had
32,000 employees, total revenue of €4.155 billion
and negative earnings of €537 million.
www.siemens.com/ar/it-solutions
With financing playing an ever-greater role in facili-

tating investments in energy, industry and health-
care technologies, customized financial solutions
are becoming an increasingly vital competitive

31
The SOMATOM Spirit –
A success story
from China
Special report 2
Get closer to
our customers
Shanghai is where we manufacture our
entry-level SOMATOM Spirit CT scanner,
and one-third of these systems are sold
directly to customers in China.
Some 600 SOMATOM Spirits are already
in operation throughout the country –
including one at Jiang County People’s
Hospital. Worldwide, we’ve installed more
than 1,800 of these successful scanners.
E
mergency: A woman who sustained head injuries in
an accident is prepared for CT imaging.
B
ecause the Jiang County People’s Hospital acquired
a SOMATOM Spirit system two years ago, radiologist
Dr. Zheng didn’t have to think twice about returning to
the facility after a year of training in Beijing.
Two years ago, Jiang County People’s Hospital acquired the first
SOMATOM Spirit CT scanner in its region.
Head radiologist Dr. Zheng Jie Hua explains, “Brain scans used
to take ten minutes. Thanks to the SOMATOM Spirit, the whole
process – including patient positioning and removal – now
34 lasts no more than five minutes.”
10,000
patients
Since our SOMATOM Spirit was

installed at Jiang County People’s
Hospital two years ago, 10,000
scans have been performed with
out a single system failure. Regular
maintenance by our service per
sonnel ensures that we’ll be able
to keep up this outstanding track
record in the future.
“The SOMATOM Spirit is our pride

and joy,” says hospital director
Li Ze Hai.
99.6 percent
reliability
The SOMATOM Spirit is a real

radiology workhorse. What sets
the system apart is its user
friendliness and nearly 100 percent
reliability.
Yan Xiao Hua, head of manufacturing at our Shanghai
facility, introduced lean production at the plant –
making it possible to build a complete SOMATOM Spirit
system in just two days.
We produce several hundred SOMATOM Spirits every
year in Shanghai. China is the largest market for these
scanners (30 percent), followed by Brazil, Japan and
India.
The SOMATOM Spirit is the CT system for entry-level,

M3 market segments: it’s extremely reliable and very fast –
yet affordable.
That’s why this dual-slice scanner epitomizes our SMART

strategy: it’s simple, maintenance-friendly, affordable, reliable
and timely-to-market.
In the years ahead, about half the world’s economic growth

will be generated in the BRIC countries (Brazil, Russia, India
and China) and the Middle East. A local value chain and direct,
on-site business responsibility are vital success factors in
these markets. Why? Because they get us even closer to our
customers. 37
11 km2
That’s how big the Shanghai International
Medical Zone is.
It’s here, in the western part of

Shanghai, that the new local head
quarters of Siemens Healthcare are
situated. About 700 employees,
including 350 researchers and devel
opers, work at the 35,000-square-
meter facility, where we produce
not only CT scanners and compo
nents but also angiography systems.
Our SMART strategy 10,000 SCANS – AND NOT A SINGLE FAILURE
Dr. Zheng’s colleague and fellow radiologist
in China Dr. Zhang Yi Qun stresses the CT scanner’s reliabil-
ity, noting, “In the past two years, we haven’t had
a single failure, and we’ve performed some 10,000
scans.” To ensure such outstanding reliability in the
future, Siemens technicians regularly service the
system.
As head of manufacturing at our Shanghai facility,

Yan Xiao Hua is responsible for the efficient produc-
tion of the SOMATOM Spirit. The supply chain man-
agement department has introduced lean produc-
tion at the plant – cutting the time it takes to build
We manufacture the SOMATOM a CT system by 20 percent. A SOMATOM Spirit can
now be manufactured and fully assembled within
Spirit – a successful entry- two days. Each of the several hundred units pro-
level CT system – in China, and duced each year then undergoes thorough testing
about a third of the units never for two more days before being shipped. On site, we
go beyond merely installing the SOMATOM Spirit;
leave the country. One scanner
our customer relationship management expert,
is in operation at Jiang County Shi Yong Zhen, also provides training to familiarize
People’s Hospital in central customers with the system’s basic operation and
China. various applications.
Two years ago, Jiang County People’s Hospital, SMART STRATEGY FOR THE DIVERSE CHINESE
under the direction of Li Ze Hai, acquired the first MARKET
SOMATOM Spirit in its region. Dr. Kong Jun, now general manager of our CT busi-
ness in China, was appointed head of R&D in 2005,
LEADING-EDGE CT TECHNOLOGY DOUBLES just as the SOMATOM Spirit was being rolled out.
PROFITS “The time was right for a product like the SOMATOM
Hospital director Li hasn’t regretted his decision for Spirit, a multi-slice scanner for the entry-level mar-
a moment: “The SOMATOM Spirit is our pride and ket segment,” explains Dr. Kong. To meet customer
joy. Not only does our hospital have the most ad- requirements as fully as possible, the system’s en-
vanced CT scanner in our region; we’ve also dou- tire value chain – from R&D and production to logis-
bled our profits.” tics – was situated in Shanghai.
Located more than 1,000 kilometers from Shanghai, Today, some 600 SOMATOM Spirits have been in-
Jiang County People’s Hospital serves roughly stalled in China, primarily in rural areas. In many
300,000 people. Every day, patients arrive for respects, including the provision of healthcare, the
scans – no appointment necessary. Head radiologist contrast between the Chinese countryside and the
Dr. Zheng Jie Hua recalls, “Brain scans used to take modern megacity of Shanghai couldn’t be greater.
ten minutes. Thanks to the SOMATOM Spirit, the “The market in China is very diverse,” explains
whole process – including patient positioning and Florian Belohlavek, product manager for the
removal – now lasts no more than five minutes.” SOMATOM Spirit. “While most hospitals in Beijing
are equipped with high-end systems, the focus in
rural areas is on basic care.” And that’s exactly the
kind of market we’re aiming to serve with our
SMART strategy (see page 44).
www.siemens.com/healthcare
39
Directions
Directions: Overview
See page 11.
Continually tapping new markets with innovative products and

solutions requires the kind of pioneering spirit that’s made our
company strong. It also requires clear strategic priorities – priori-
ties that provide orientation and are vital for sustainable growth.
Our focus is on innovation- and technology-driven growth mar-

kets, where we’re aiming for market and technology leadership.
To achieve this aim, we’re getting closer to our customers and cre-
ating value locally – all around the world. Our vision for the future
is to generate sustainable, profitable growth while outperforming
our competitors. And we’re poised to realize this vision – with our
innovative products, solutions and services, our outstanding part-
ners and a supply chain geared to efficiency and sustainability.

40
“What each of the employees of Siemens
is involved with is helping America stake a claim
on a clean energy future.”
U.S. President Barack Obama, during his visit to our
production facility in Fort Madison, Iowa, on April 27, 2010
www.siemens.com/obama
Focus on innovation-driven tive solution that’s enabling Siemens VAI’s custom-

growth markets ers in the steel industry to perform objective, veri
fiable environmental impact and cost-efficiency
A high level of investment in research and develop- assessments during the development phase. Tech-
ment is essential for sustainable business growth. nology-to-business (TTB) centers are a market-ori-
In fiscal 2010, we invested €3.846 billion, or 5.1 per- ented form of research cooperation. To foster break-
cent of our total revenue, in R&D activities. About through innovations, we contribute funding and
30,100 Siemens employees are currently involved in expertise to independent startups that cooperate
research and development at 178 company loca- closely with our partner universities. For example,
tions in some 30 countries. Every workday, we file our TTB center in Berkeley, California was the incu-
an average of 40 invention reports and about 20 bator for the IWLAN data transmission technology
patent applications. We’re proud to rank No. 3 in that we developed for the manufacturing industry.
Germany, No. 2 in Europe and No. 13 in the U.S. in
patent applications. And we intend to improve these Our Healthcare Sector is collaborating with partners
rankings even further. to develop innovative phase-contrast X-ray imaging
systems that increase diagnostic precision by pro-
The key to achieving our goals is an open innova- ducing very detailed images of various types of soft
tion strategy that enables us to exploit global syner- tissue. We’re also implementing long-term develop-
gies in order to cut costs, leverage innovative ment projects in response to today’s megatrends.
strengths and increase competitiveness. Every year, For instance, we’re pushing the development of so-
we participate in more than 1,000 partnerships with lutions that improve the quality of healthcare
universities, research institutions and industrial worldwide. In addition to the early detection and
companies, enhancing our innovation portfolio treatment of disease, we’re focusing on optimizing
worldwide. For instance, we’re partnering with en- the efficiency of healthcare IT workflows to improve
ergy providers in Germany and Finland and with patient care.
prestigious research institutes in the Netherlands to
develop technologies for the separation of CO2 at To curb global warming and achieve ambitious
power plants. Our aim in all these cooperative ef- climate goals worldwide, economic development
forts is marketability. For example, a joint research will have to be decoupled from energy consump-
project with the Technical University of Denmark tion – for example, through the use of energy-effi-
(DTU) in Copenhagen and the Technical University cient drives and lighting solutions, smart building
of Berlin produced the Eco-Care Matrix, an innova- technologies and control systems for industrial pro-

41
1 Focus on innovation-driven growth markets
4
43 Get closer to our customers
To meet 15 percent of Europe’s electricity requirements
with renewable energy –
That’s the ambitious goal of an industrial consortium

of which we’re a founding member and technology partner.
duction. The demand for CO2-neutral power genera- and power transmission to bear in this promising
tion is also growing. Over the last few years, we’ve future market. But projects such as DESERTEC pose
expanded our portfolio in this area, too. In every new problems for power grids. In the future, sub-
case, our acquisition strategy is the same: to be stantial amounts of electricity will be generated
No. 1 or No. 2 in all our technologies and markets. from fluctuating sources of energy like the wind,
Why? Because it’s the only way we can drive profit- the sun and a growing number of small, decentral-
ability and growth in order to achieve a sustainable ized power producers. This electricity will then have
increase in our company’s value. In the field of solar to be integrated into smart grids that can balance
technology, for instance, we’re a major supplier of power generation and distribution. To capitalize on
steam turbines, electrical and control technology excellent market opportunities in this area, we’ve
and inverters as well as generators and cooling sys- established a company-wide smart-grid applica-
tems for solar power plants. Our electrical and auto- tions project. Bundling our expertise, this project
mation technologies are also facilitating the effi- aims to further boost our revenue from intelligent
cient production of high-quality solar mirrors and grid technologies. Other sources of tremendous po-
receivers. In the spring of 2009, we acquired a tential include buildings, which are increasingly
roughly 30 percent stake in Italy’s Archimede Solar, evolving from mere energy consumers to active par-
enhancing our portfolio with key components for ticipants in the power market. These so-called smart
the solar thermal systems of tomorrow. Our acquisi- buildings can store energy and even generate elec-
tion of Solel Solar at the beginning of fiscal 2010 tricity that is fed back into the grid.
made us a full-range provider for the solar thermal
power industry. As our Environmental Portfolio demonstrates, we’re
already well positioned in all these fields. Generat-
As a member of an industrial consortium, we’re in- ing revenue of about €28 billion, the Portfolio has
volved in planning large-scale solar thermal power not only made us the world market leader in green
plants and wind farms in the deserts of North Afri- technologies; it’s also driving progress on three
ca. The clean electricity generated by this project – fronts: for our customers, by enhancing their busi-
known as the DESERTEC Industrial Initiative – will ness success through lower energy costs, higher
cover most of the power needs of the producing productivity and profitable growth; for society, by
countries and, in the project’s final stage, also meet implementing our technologies to help protect the
about 15 percent of Europe’s electricity require- environment and improve living conditions; and for
ments. We’re bringing our extensive knowhow in our company, by enabling us to penetrate attractive
the fields of solar thermal technology, wind energy markets and generate profitable growth. As a green

42
The DESERTEC concept –
A model for sustainable energy supply
Geothermal Biomass Hydro Solar Photovoltaic Wind
infrastructure pioneer, we’re the market leader in Get closer to our customers
the future-oriented field of offshore wind power,
the manufacturer of the Velaro high-speed train, In many countries around the world, we’re consid-
a leading supplier of high-efficiency, low-loss power ered a local company by customers and the general
grids, and a provider of energy-saving performance public alike. Even outside our home country, Ger-
contracting, which offers an intelligent financing many, the number of second- and third-generation
model for sustainable building modernization. Siemens employees is increasing. Expanding our
brand’s global presence and strengthening our local
With above-average growth in renewable energies, partnerships are two of the drivers we’ve identified
environmental technologies and energy-efficient as decisive for our future business success.
products and solutions expected in the years and
decades to come, we’re systematically accelerating We employ roughly 405,000 people in some 190
our involvement in these markets as well as in the countries. Just a few years after our company was
emerging countries. The BRIC countries – Brazil, founded in 1847, we opened our first local branch
Russia, India and China – and the Middle East, offices in Great Britain (1850), Russia (1855), France
for example, are expected to generate substantial (1878) and Austria (1879). By 1881, we were already
growth in the years ahead. As a result, these regions a global player: in that year, about 63 percent of
will need to implement extensive infrastructure Siemens’ 2,400 employees were working outside
projects. We’re tapping this potential with high-tech Germany. Today, the share is 68 percent.
solutions that also help conserve resources. All
around the world, we supply and equip ports, air- Our success is closely linked to our strong presence
ports, train stations, mainline and mass transit in dynamic markets. To respond quickly to new and
trains, transportation and security control centers, changing requirements, we have to be where our
hospitals, sports and entertainment centers, public customers are. That’s why we’re particularly active
buildings and other large-scale facilities. The com- in the rapidly growing emerging countries and in
prehensive services that we provide across our the Middle East. But to achieve above-average
products’ entire lifecycles further boost our com- annual revenue growth in all these regions, we’ll
petitive position. Particularly in highly competitive need more than local presence. We’ll also have to
markets, our complete package of products and ser- have the right offerings. That’s why we’ve launched
vices is a unique selling point and a crucial deci- our SMART (simplicity, maintenance-friendly,
sion-making factor for our local customers. affordable, reliable and timely-to-market) initiative:

43
4
During a recent visit to our plant in Tianjin,
Chinese Premier Wen Jiabao was highly impressed by
our world-class products and production processes.
He called Siemens a Chinese company.
to boost our growth worldwide by supplying prod- to achieve the kind of long-lasting customer satis-
ucts, solutions and services tailored to the booming faction that makes us the first choice for follow-on
entry-level market segments. investment. It’s not only our sales organization that
nurtures close relationships with our customers
Another way to strengthen long-term customer and fosters their loyalty; above all, it’s our local ser-
partnerships is to foster local entrepreneurship vice employees, who – in some instances building
within our own organization. As a result, we’re giv- on relationships that go back decades – have de-
ing our regional organizations the freedom they tailed knowledge of our customers’ needs. And this
need to make decisions on their own. We’re also ex- indispensable knowledge sets us apart from many
panding their responsibilities for product manage- of our competitors. Our highly diversified service of-
ment, development, procurement and manufactur- ferings are a key growth driver. Making major con-
ing. Our SOMATOM Spirit business (see also pages tributions to our profitability, they’re a reliable
32-39), which we operate directly in China rather source of high-margin revenue – and they’re less
than in Europe or the U.S., is a prime example of capital-intensive than other types of business.
this new approach. Designed for entry-level mar- What’s more, because long-term agreements are
kets, the easy-to-use SOMATOM Spirit scanner of- the rule, services are less vulnerable to business
fers basic CT features at a competitive price. Ninety cycles. We’re making investments worldwide in or-
percent of the system’s components are sourced der to further exploit the enormous potential of our
from the Chinese market. Each unit is completely service offerings. And we’re also constantly expand-
assembled in China. And most of the development ing our portfolio of innovative services and the re-
work was done in Shanghai. Feedback from our cus- lated leading-edge technologies.
tomers in the emerging markets is also expanding
our employees’ expertise in product features and As products become increasingly standardized,
cost optimization, with long-range advantages for we’re convinced that services are a key strategic fac-
the development of solutions for the higher-end tor that will give us a competitive edge. Services can
price segments as well. optimize a customer’s installed base and ensure its
smooth operation – a prospect that’s particularly
We want to engender enduring brand loyalty in the appealing to our customers during periods of eco-
emerging markets. That’s why we’re going to great nomic turbulence. The services we provide bring us
lengths to establish local service networks. By pro- close to our customers – across entire product life-
viding outstanding local services, we’re aiming cycles. And that’s an important reason why we’re

44
China
Our new CT scanner, the SOMATOM Spirit,

is strengthening our position in growth markets.
especially intent on growing in service-intensive A highly differentiated benchmarking system helps

segments and why we always give special consider- us continuously assess where we stand vis-à-vis the
ation to potential service business when expanding competition, what our future business opportuni-
our portfolio. ties will be and where they will arise. But we can’t
compare ourselves only to our global competitors.
To get closer to our customers – for us, this means To identify the key competitive factors that will en-
gaining a detailed understanding of our customers’ able us to capture and maintain No. 1 or No. 2 mar-
processes and of their customers’ processes as well ket and technology positions in all our regions and
as providing intelligent solutions tailored to specific segments, we also have to benchmark our perfor-
customer requirements. Through contacts extend- mance against that of local providers. Supplying
ing over years and, sometimes, decades, our local products and services tailored to the dynamic
employees have gained our customers’ trust – trust growth markets of the emerging countries is be-
in the reliability and quality of our products, trust in coming increasingly crucial to our success. While
our company’s power of innovation, trust in the cost is a factor here, it’s not the only one. We also
Siemens brand. want to create entire supplier-to-customer value
chains that will establish us in emerging markets as
This trust is an asset that we’re proud of, and we solidly as our local competitors.
intend to cultivate it over the long term with a pres-
ence in all relevant markets around the world, We’re well aware that our activities have a major im-
a global sales organization – managed locally by our pact on the societies and environments of the coun-
Regional Clusters and Regional Companies – and tries in which we procure products and services. For
a broad portfolio of products, solutions and services this reason, sustainability is a key factor in our sup-
designed to meet the world’s most urgent challeng- ply chain management. Starting in the selection
es. Siemens One will enable us to bundle our entire phase, we demand that potential suppliers comply
range of offerings company-wide and gear them to with our strict principles and promote the imple-
customer requirements. That’s how we’ll continue mentation of these principles in their own supply
to create customized end-to-end solutions – for ex- chains. And our efforts here are already paying off:
ample, for airports, hotels, hospitals and even en- in fiscal 2009, our system of supply chain sustain-
tire city districts. By bundling our strengths, we’re ability management captured the No. 1 spot in the
equipping ourselves to outperform our competitors Standards for Suppliers category of the prestigious
over the long term. SAM Dow Jones Sustainability Index.

45
4
We’re the ideal employer for people
who have the courage to ask questions –
because they’re the kind of people who can help us find solutions
to the challenges of today and tomorrow.
To ensure that we maintain a sustainable supplier we spent roughly €225 million, or about €560 per
base throughout the company in the future, we’re employee, on education. Focused on strategic
constantly improving and integrating our methods, knowledge and skills, our challenging training and
processes and systems on a cross-functional basis further education programs ensure that expertise in
and transferring relevant knowhow to our suppliers key positions is uniformly conveyed to employees
in order to actively minimize risks and anchor sus- worldwide throughout the course of their careers –
tainability all along our supply chain. because life-long learning is indispensable in a glo-
balized world.
Use the power of Siemens As a global integrated technology company, we not

only have to attract talented people; we also have to
Our aim is to consistently outperform our competi- create an environment in which they can use and
tors. We can succeed only by providing our custom- develop their abilities. The new Siemens Leadership
ers with innovative products and tailored solutions, Framework helps us apply uniform criteria as we
by acting in accordance with binding principles of match our employees’ capabilities and potential
conduct and, above all, by recruiting and fostering with the requirements of job openings. Studies
employees who are passionate about what they do. have shown that diverse teams of individuals with
In short: by leveraging the collective energies of our different skills, experience and qualifications in-
company. crease the wealth of ideas within a company. That’s
why diversity is a key component of our business
Our people are shaping tomorrow’s world. Their strategy – one we’re championing as a means of re-
knowhow and commitment are among the most cruiting the best minds in the world and strength-
important drivers for our long-term competitive ening our power of innovation. By reflecting the
success. That’s why we comply with the relevant varied backgrounds of our customers, our work-
international standards, safeguard jobs during eco- force will give us yet another competitive advantage
nomic downturns and invest in our people’s train- in the global arena. The diversity of our 405,000
ing and continuing education. In fiscal 2010 alone, women and men – with their multifaceted cultural,
ethnic and social perspectives and their broad range
of knowhow and experience – is equipping our
company to excel in the 21st century.

46
Yusuf Al-Ghamdi Kristy Myers Liu Xiang Ghada Trotabas
As Siemens employees, we’re working every day

to find answers to the challenges of our time. www.siemens.com/career
Use the power of Siemens – this call to action en- with these standards. For us, responsible business
tails an unequivocal commitment to integrity. And conduct encompasses everything from observing
our understanding of integrity is underpinned human and employee rights to complying with all
by our company values: responsible, excellent, applicable environmental requirements, occu
innovative. pational health and safety standards and anti-
corruption regulations. Why? Because high ethical
We meet – and, wherever possible, exceed – all le- standards are a prerequisite for responsible busi-
gal requirements for ethical behavior. We have no ness activity and the foundation of a living culture
tolerance for illegal or unethical activity. In addi- of integrity.
tion, we’ve set clear and binding principles of con-
duct for our employees. Encompassing all our busi-
ness operations, these principles set standards and
define clear responsibilities for occupational safety,
health management, environmental protection and
the uncompromising battle against corruption.
We’re not only providing our customers with ener-

gy-efficient, green technologies; we’re also working
to minimize our own environmental impact. Our
company-wide environmental protection program,
which includes clear management guidelines, is
one unambiguous expression of this commitment.
We place high demands on our business partners,

suppliers and stakeholders, requiring them to ad-
here to the same standards of business ethics that
we do, at all times and in all places. Our energy ef-
ficiency programs and sustainability audits are just
two examples of how we’re ensuring conformity

47
4
Electric mobility –
Moving from the oil era
to the electric age
Special report 3
Use the power

of Siemens
Electric mobility underscores the potential
of a no-holds-barred approach. All across
our company, engineers and researchers
are working with external partners in the
quest for a breakthrough in this up-and-
coming field – leveraging innovative tech-
nologies and solutions along the entire
process chain.
The cars in our electric fleet are regularly serviced and
tested to ensure their smooth operation. In this picture,
a high-voltage power train is being examined on the
vehicle test rig in Munich.
Andreas Romandi heads the fleet test pilot project at
our Corporate Technology Department.
As part of a large-scale fleet test, Siemens employees in

Erlangen and Munich, Germany are evaluating the perfor-
mance of 100 electric vehicles.
Project head Andreas Romandi says, “We want this pilot proj-
ect to be a first step toward an integrated, end-to-end system
comprising electric vehicles, a smart grid and advanced vehi-
cle-to-grid communication technologies. Our goal is to learn
more about how to optimally link advanced power grids with
50 electric cars that serve as mobile energy storage devices.”
150
electric mobility specialists
While some of our experts research,

develop and test vehicle technol-
ogy, others design and optimize
power generation and distribution
infrastructures, charging technol
ogies and vehicle-to-grid communi-
cation systems.
120
kilometers on a single battery charge
The centerpiece of each of the

100 test vehicles is an electric motor
that weighs only 55 kilograms.
Boasting a peak output of 125 kilowatts,
the motor generates 50 kilowatts
of power during continuous driving.
The electric car’s charging cable allows the bi-directional
transmission of power and data. On driver request, the
system reports charging status via a mobile communica-
tions link.
Our specialists in Munich regularly inspect the vehicles’
electric motors to monitor safety, operability and wear.
Harnessing the renewable energy of the wind and the sun,

green technologies are set to transform mobility all around
the globe. And we’re the only company in the world that’s
developing solutions for the entire energy conversion chain.
Just consider this scenario: electricity generated by Siemens
wind turbines could soon be transported via Siemens smart
grids and easy-to-use charging stations into electric car batter-
ies that power Siemens electric motors – an outstanding basis
for a wide array of market opportunities.
“Smart grids will enable us to use energy and, above all, elec-
trical power more efficiently. In the future, consumers will
interact with the grid automatically – for instance, by storing
electricity in their electric vehicles and feeding it back into
the network when the batteries aren’t in use. The Siemens
fleet of electric cars is a prime example of forward-looking,
ecofriendly, intelligent automotive technology.”
Richard Hausmann
CEO of Siemens’ Smart Grid Applications –
Electromobility Project 53
100
Siemens test drivers
We’re now selecting 100 employees

in Munich and Erlangen to test-
drive our electric cars. Plans call for
expanding the fleet test to addi-
tional company locations.
Paving the way power generation and distribution to charging and
drive technologies to power electronics. We’ve set
for electric mobility up a new unit to bundle key components of the
drive technologies and power electronics needed
for electric motors, converters and smart charging
solutions. We’ve also launched a new Smart Grid
Applications – Electromobility Project with the aim
of linking consumers to power generation, trans-
mission and distribution systems via intelligent
applications and communication technologies.
As a world-leading provider of industrial software

and automation technologies, we can deliver the ef-
ficient manufacturing solutions needed to cut costs
Siemens boasts the technol- for electric vehicles and the associated compo-
nents, such as batteries. Building on our long years
ogy and expertise needed to of experience serving automakers and their suppli-
spark a breakthrough in electric ers, we intend to be a reliable partner for these cus-
mobility. tomers in the field of electric mobility as well. Over
the last two years, we’ve participated in various
pilot projects in Germany and other countries – in-
Werner von Siemens would be proud. Back in 1882, cluding the EDISON project in Denmark, the
he tested a prototype of an electric trolleybus, the Harz.EE-Mobility project in Germany’s Harz region
Electromote. In 1905, his son Wilhelm launched the and the Drive eCharged electric mobility initiative in
Electric Victoria, one of Germany’s first electric cars, Munich.
in small-series production. And today, we’re con-
tinuing this long tradition of pioneering achieve- The idea behind the current fleet test is to assess
ment. the feasibility of all our electric mobility innova-
tions for everyday use and to make any necessary
We’re now the market and innovation leader in elec- improvements. The fleet test underscores our com-
tric mobility. But vehicles are just one building mitment to taking a leadership role in an era of
block in the overall concept, which involves much increased cooperation between carmakers and
more than electricity-powered transportation. electricity providers. The fields of mobility and
power infrastructure will be transformed in the
The world is on the threshold of a new electric age. new electric age. And the German news magazine
In the future, electricity will be the most important Der Spiegel is convinced that we’re on the right
energy carrier. As a consequence, the demand for track: “Only a major company with knowhow, lo-
electricity will surge. But not only that: more and gistics and clout can play this role. There are no
more power will be generated from renewable more than three companies in the world capable of
sources. And this presents a challenge since – due successfully implementing such a project. In Eu-
to fluctuations in their supply – renewables like rope, only one company comes to mind – and it’s
wind and solar power place a heavy strain on exist- headquartered at Wittelsbacher Platz 2 in Munich.”
ing power grids. The key to mastering this chal- www.siemens.com/electromobility
lenge is a flexible, state-of-the-art smart grid that
can adapt to changes in consumer requirements.
Electric vehicles – which can store electricity and
return it to the grid when needed – will play a major
role here. Siemens boasts the technology and ex-
pertise needed to spark a breakthrough in electric
mobility. We’re one of the few companies in the
world with a portfolio spanning the entire electro-
mobility process chain – from infrastructure for 55
One Siemens
Siemens occupies outstanding positions all around the world.

The company-wide programs we’ve implemented over the last
few years have transformed our organization and progressively
strengthened our global competitiveness. Our portfolio is
geared to attractive, high-growth markets. In terms of profit-
ability, we’ve caught up with or overtaken our competitors.
As an integrated technology company, we’re a leader in many
of our businesses.
It’s from this position of strength that we’re advancing into

the future. With a financial target system and a goal of contin-
uous improvement relative to the market and our competitors,
One Siemens is providing us with the framework for success.

56
Framework for sustainable value creation
See overview on page 57 and pages 59-60 of Part II of this Annual Report.
We gear our actions to the dynamics of our markets operations before interest divided by average capi-
while measuring ourselves against the best in our tal employed (ROCE adjusted). We’ve set an ambi-
industry. Our goal is to consistently outperform our tious capital efficiency target for the entire company.
competitors and to set new standards for leadership With respect to profitability, we intend to maintain
in financial performance and operating strength. and expand our leading position. Our goal is to
We’ve established a financial target system that achieve industry-leading profit margins – over the
defines metrics for revenue growth, capital efficien- long term and across business cycles.
cy, profitability and the optimization of our capital
structure. These metrics are key tools for increasing CAPITAL STRUCTURE
our company’s value. A solid capital structure is essential for sustainable
profit and revenue growth. In addition to metrics for
REVENUE GROWTH operations, we’ve defined a yardstick for managing
Profitable revenue growth is the most important this structure: adjusted industrial net debt divided
driver of long-term value creation. That’s why we by EBITDA. We’re going to optimize this ratio in or-
want to grow faster than the best companies in our der to ensure both wider access to debt financing
markets. To assess our performance, we compare instruments in the capital markets and the servic-
our average revenue growth to that of our toughest ing of our financial obligations while safeguarding
competitors. We’ve also established strict criteria our current credit rating.
for acquisitions.
Taken together, these metrics provide a balanced
CAPITAL EFFICIENCY / PROFITABILITY framework for sustainable value creation.
Our aim is to remain profitable and use the capital
provided by our shareholders and lenders as effi- CONTINUOUS IMPROVEMENT
ciently as possible. A key measure of our business The aim of One Siemens is to enhance the value of
success, capital efficiency has been included in our our company over the long term by continuously
financial reporting system since fiscal 2007. We’ve improving our performance relative to the market
now further developed our main metric for capital and our competitors.
efficiency, return on capital employed (ROCE), www.siemens.com/one-siemens
defining it more simply as income from continuing

59
7 One Siemens: Overview
5
59 Framework for sustainable value creation
60 Focus areas
One Siemens
Revenue growth
Growth > most relevant competitors
Provide a leading Grow in emerging

h m n -
gro d ovat on
ets
environmental markets
wt rive ion
ou
clo usto
portfolio
ark
s
rc
Ge r to ers
inn ocu
se m
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F
Expand
Strengthen our our service
portfolio business
Re
Be a pioneer Intensify our

One Siemens
tur
in technology- customer focus

no
driven markets
nc
The integrated technology company

Caital em
ap
pit plo
DA
al yed
BIT
eb re
Responsible – Excellent – Innovative
effi / top
t / E
ne tu
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Stand for Encourage lifelong

y / P thr
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integrity learning and

du
development
rofiough
p
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Ca
tabout b
ste
ju
Empower our
ilit usin
Ad
diverse and
y ess
engaged people
worldwide
cyc
les
Use
the power
of Siemens

57
c d
A
B
b e
a f
i g
One Siemens: Overview

h
A – C a – i
Framework for Strategic directions Focus areas

value creation

58
Focus areas
See overview on page 57.
We intend to unleash our full potential as an integrated technol-

ogy company. A strategy rigorously geared to value creation
will help us achieve this goal. The path we’re following is defined
by what we call our three strategic directions: focus on innova-
tion-driven growth markets, get closer to our customers and use
the power of Siemens. These strategic directions are broken down
into nine concrete focus areas that will shape our activities in
the years to come.

60
A Focus on innovation-driven growth markets
See also pages 41-43 and overview on page 57.
Our pioneering spirit is the foundation of our suc- STRENGTHEN OUR PORTFOLIO
cess. We’re breaking new ground and pushing for- Only by keeping our portfolio focused on attractive
ward into dynamic growth markets while thinking future-oriented markets can we achieve profitable
across borders and considering every challenge long-term growth. That’s why we practice active,
from a variety of perspectives. We’re gearing our systematic portfolio management. Our aim is to
activities to innovation-driven markets with long- capture and maintain No. 1 or No. 2 positions in all
term growth potential. Intent on capturing leading our current and future markets. Indispensible for
positions on these markets, we’ve defined three profitability and growth, these leading positions
focus areas: will enable us to sustainably increase our compa-
ny’s value. Experience has shown that size alone is
BE A PIONEER IN not enough. To achieve long-term success, we must
TECHNOLOGY-DRIVEN MARKETS also remain at the forefront of technological inno-
We’re concentrating on innovation- and technology- vation. This is the guiding principle of our portfolio
driven growth markets, which will be the basis for development.
our core businesses in the future. This approach
will enable us to increase the revenue we generate PROVIDE A LEADING
from our green products and solutions. For exam- ENVIRONMENTAL P ORTFOLIO
ple, the world’s cities increasingly need sustainable, As our revenue figures for the last few years testify,
intelligent infrastructures – and we’re better posi- our Environmental Portfolio has an outstanding po-
tioned than any other company to meet their re- sition worldwide. In fiscal 2010, we generated rev-
quirements. We intend to fully leverage this poten- enue of around €28 billion with Portfolio offerings.
tial and our strengths as an integrated technology Our goal for the future is even more ambitious:
company. we intend to boost revenue from our green tech-
nologies to over €40 billion by fiscal 2014. These
technologies are also making a major contribution
to climate protection. In fiscal 2010, our ecofriendly
products and solutions enabled our customers to
slash their CO2 emissions by 267 million tons.

61
5
60 Focus areas
B Get closer to our customers
In bustling cities and rural areas alike: we’re close to cyclical influences. To further leverage our enor-
our customers all around the world. Market proxim- mous potential in the area of highly diversified ser-
ity is a key driver for sustainable growth. And to vices, we’re making investments around the globe.
maintain it in the future, we’re concentrating on the We’re also systematically expanding our range of
following focus areas: innovative services and advanced service technolo-
gies. As product standardization increases, we’re
GROW IN EMERGING MARKETS convinced that services will provide us with a
We already hold a leading position in many of the strategic competitive advantage while bringing us
world’s markets. Building on this achievement, we closer to our customers – over entire product
intend to continuously increase the share of reve- lifecycles. That’s why we’re intensively driving our
nue we generate in the world’s emerging countries. service business and will continue to do so in the
To tap these markets even more effectively, we’re future.
increasingly tailoring our products, solutions and
services to the requirements of the booming middle INTENSIFY OUR CUSTOMER FOCUS
and lower market segments. We’re also shifting We’ve long had a reputation for outstanding cus-
more decision-making authority to our local busi- tomer proximity. We’re committed to providing our
nesses. For example, we’ve now given our compa- customers, most of whom are small to mid-sized
nies in the emerging countries more responsibility businesses, with direct local support – a commit-
for product management, development, procurement we’re fulfilling via a global sales network man-
ment and production. aged by our Regional Clusters and Regional Compa-
nies. To present one face to major customers in our
EXPAND OUR SERVICE BUSINESS most important markets, we’ve established a key
Services are not only a key driver for implementing account management system. Our more than 2,000
our growth strategy; they also make a major contri- key account managers are providing these custom-
bution to our profitability. While generating reliable ers worldwide with sustainable solutions encom-
revenue with high margins, services are less capi- passing everything from routine deliveries to major
tal-intensive than other types of business. Based on infrastructure projects. After all, our success de-
long-term agreements, they’re also less sensitive to pends on customer satisfaction, which we measure
using an internationally recognized methodology.

62
C Use the power of Siemens
We’re continuing to take full advantage of our global EMPOWER OUR DIVERSE AND ENGAGED
orientation, size and structure as an integrated P EOPLE WORLDWIDE
technology company for the benefit of our custom- Global presence is our hallmark. That’s why diver-
ers, suppliers and employees. Cross-Sector, cross- sity is a key part of our company – and one that we
Division and external partnerships are enabling us intend to further cultivate. Our Diversity Initiative is
to offer a uniquely diversified portfolio – thanks in helping us build outstanding teams with multifac-
large part to our excellent and innovative employ- eted abilities and experience while fostering the
ees, who are among our greatest assets. strengths of individuals in heterogenous environ-
ments. It’s also helping ensure that our managers
ENCOURAGE LIFELONG LEARNING have international backgrounds, with wide-ranging
AND DEVELOPMENT expertise and extensive experience.
Innovation – the basis of sustainable growth –
doesn’t happen on its own. It requires an environ- STAND FOR INTEGRITY
ment in which a creative spirit can thrive. To foster We champion a corporate culture that sets high
our employees’ creativity, we’re continually promot- standards of conduct for managers and employees.
ing their development through challenging training We’ve formulated transparent and binding princi-
and education programs. In Germany, we’re a lead- ples of behavior that cover all aspects of our busi-
ing private provider of vocational training within ness activity, define a uniform ethical framework for
the country’s dual training system, which combines our employees and establish clear responsibilities
theory with practice. Our Siemens Leadership Ex- throughout our company. Action areas include oc-
cellence programs are designed to prepare company cupational safety, health management, environ-
managers for their future responsibilities. We iden- mental protection and the fight against corruption.
tify talented individuals and offer them exciting And we expect not only our employees but also our
management tasks. Our new Siemens Leadership partners and suppliers to adhere to clear principles
Framework helps us apply uniform criteria when of integrity.
matching individuals’ capabilities and potential
with the requirements of job openings.

63
5
60 Focus areas
Vision
Vision: Overview
See page 12.
Siemens is a global powerhouse that looks ahead and takes the

lead. And this pioneering spirit has always defined our company.
For us, being a pioneer means more than just fostering inven-
tion and embarking on new paths. It means forging ahead into
uncharted territory by developing, marketing and integrating lead-
ing-edge products and solutions tailored to today’s requirements.
It also involves taking calculated risks to push innovation. This
willingness to innovate, coupled with conviction and passion,
is what motivates our employees. Only the kind of teamwork that
enables all players to give their best, shoulder their responsibili-
ties and leverage their strengths can yield true pioneering achieve-
ments, whether in 1847 – the year our company was founded –
or today. And it’s this pioneering spirit that informs our company’s
vision of our technologies and tomorrow’s key markets.

64
intelligent energy efficiency
Siemens is the pioneer in
infrastructure solutions
industrial affordable and

productivity personalized healthcare
www.siemens.com/vision
Thinking ahead opment and production planning. The key here is

the merging of product lifecycle management
At Siemens, we’ve always thought of our company (PLM) systems with automation technologies.
as a pioneer; it’s our vision of ourselves. For more We see excellent prospects for our industrial soft-
than 160 years, our greatest successes have been ware offerings, which offer an end-to-end develop-
pioneering technological achievements. In 1848, ment environment along the entire value chain.
we began building major telegraph lines; in 1866,
we rang in the era of electrical engineering; and fol- A pioneer must have the courage to move into new
lowing the discovery of X-rays in 1896, we devel- and sometimes uncertain territory. As a flourishing
oped the first X-ray devices. In 1905, we rolled out company, we’re able to unleash and cultivate our
one of the first serially produced electric vehicles in greatest strength – our pioneering spirit – even in
Germany; in 1996, we launched piezo injection sys- challenging times, as we proved during the recent
tems for high-performance and energy-efficient economic crisis. Being a pioneer means not looking
combustion engines; and in 2009, we installed the for risks, but acting responsibly with an eye to the
first floating megawatt-class wind turbine on the future. It’s our people’s outstanding expertise and
open seas. In the field of innovative lighting tech- their experience of what’s both technically possible
nologies, OSRAM is indisputably a pioneer. Its sub- and economically viable that enable our pioneering
sidiary OSRAM Opto Semiconductors is currently achievements. Our sound financial basis provides
building the world’s first pilot production line for us with a stable foundation from which to evaluate
organic LEDs (OLEDs) in Regensburg, Germany – and seize opportunities. It gives us the long-term
driving the development of OLED technology and perspective we need to pursue concrete visions –
related production processes with the aim of reach- such as the initiative described in this Report for
ing a preliminary stage of series production. providing Europe with solar and wind energy from
North Africa; the construction of a carbon-neutral
However, meeting the challenges of the future will metropolis, which is already being realized in Mas-
entail not only pursuing new technologies but also dar City, in the United Arab Emirates; the complete,
maintaining a market-oriented focus on value cre- intermodal networking of mobility solutions for the
ation. With our vision, we’re rising to tomorrow’s more efficient transport of people and goods; and
challenges today – thinking ahead so we can open last but not least, the comprehensive provision of
up new frontiers with our innovative products and affordable healthcare in developing and emerging
solutions. For example, we’re aiming to push pro- countries.
ductivity while shortening both the development
phase and time-to-market. We’ve created advanced
solutions that enable simultaneous product devel-

65
65 Thinking ahead
Order no. A19100-F-V83-X-7600
www.siemens.com Siemens Aktiengesellschaft

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Our path to

sustainable value creation

Annual Report 2010

New orders (continuing operations) 81,163 78,991

Employees (continuing operations) 3

Research and development

Siemens’ Environmental Portfolio

I ntroduction F oundation S tructure

4 Preface 15 Our values 27 Demographic change and healthcare

41 Focus on innovation-driven 57 One Siemens: Overview 65 Thinking ahead

A company geared for success and profitable growth needs a

At Siemens, sustainability – the future orientation that was fos-

In this year’s Annual Report, we’d like to present three projects

Finally, we’d like to take you for a spin in a state-of-the-art electric

These projects highlight just a few of the innovations spawned

From left to right:

On track for sustainable growth

Responsible, excellent and innovative – these are the values

Our company is providing the world with the solutions it needs

We’re in an excellent competitive position. Many of our busi-

>> focusing on innovation- and technology-driven growth

We want to fully unleash the power of our integrated tech­

All these strategic factors are combined in our entrepreneurial

Economy, environment and society

Responsible – Excellent – Innovative

Get closer to our customers

Focus on innovation- and Use the power of Siemens to

Coupling innovative concepts and visionary ideas with a far-

Now, as in Werner von Siemens’ day, we need a strong foundation,

4 Introduction 14 Foundation 26 Structure

Our values Excellent. We set ambitious targets derived from

40 Directions 56 One Siemens 64 Vision

Business opportunities Walk the talk Stakeholder engagement

4 Introduction 14 Foundation 26 Structure

Walk the talk Market and technology leadership

40 Directions 56 One Siemens 64 Vision

“Siemens is focusing on innovation- and technology-driven

20 Avi Brenmiller, Solar Thermal Energy Business Unit

The curvature of the mirrors

That’s the temperature that can

Siemens’ portfolio boasts nearly all the components and sys-

Today, there’s no question that solar thermal power is a

That’s enough ecofriendly power

thermal technology turbine which – via a generator – converts mechan-

In extremely sunny regions such as the Sahara, CSP

Solar thermal power plants – also known as concen-

The world is changing, and so are the societies in which we do

We saw the changes coming early on and geared our portfolio

4 Introduction 14 Foundation 26 Structure

Demographic change as rapidly as inhabitants would like. That’s why our

40 Directions 56 One Siemens 64 Vision

4 Introduction 14 Foundation 26 Structure

Substantial increase in real exports www.siemens.com/worldwide

40 Directions 56 One Siemens 64 Vision

A strong structure Our Energy Sector is a world-leading supplier of a

4 Introduction 14 Foundation 26 Structure

As a leading European IT service provider with a

With financing playing an ever-greater role in facili-

40 Directions 56 One Siemens 64 Vision

Since our SOMATOM Spirit was

“The SOMATOM Spirit is our pride

The SOMATOM Spirit is a real

41 Focus on innovation-driven 57 One Siemens: Overview 65 Thinking ahead

>> focusing on innovation- and technology-driven growth

We want to fully unleash the power of our integrated tech